Tulip growing is a perfectly competitive industry, and all tulip growers have the same cost curves. The market price of tulips is $25 a bunch, and each grower maximizes profit by producing 2,000 bunches a week. The average total cost of producing tulips is $20 a bunch, and the average variable cost is $15 a bunch. Minimum average variable cost is $12 a bunch.

Draw a graph representing a tulip grower’s short-run cost curves (ATC, AVC, and MC curves). On the vertical axis, label the $25.00 price, average total cost ($20.00) and average variable cost ($15.00) of producing 2,000 tulips, and the lowest possible average variable cost of $12.00.

a. What is the economic profit that each tulip grower is making in the short run? Please show your calculations.
b. What is the lowest price at which the tulip grower will produce (instead of shutting down)?
c. What is each grower’s profit at the shutdown point?
d. At a price of $25.00 per bunch, would we expect entry or exit in the long run?

Answer:

a) $10,000

b) $12

c) The grower has a loss at the shutdown price

d) New firms will enter the market in the long run

Explanation:

Find the given attachments

Western Electric has 33,500 shares of common stock outstanding at a price per share of $82 and a rate of return of 12.85 percent. The firm has 7,450 shares of 8.10 percent preferred stock outstanding at a price of $96.50 per share. The preferred stock has a par value of $100. The outstanding debt has a total face value of $413,000 and currently sells for 112.5 percent of face. The yield to maturity on the debt is 8.17 percent. What is the firm's weighted average cost of capital if the tax rate is 39 percent

Carla Vista Co. had these transactions during the current period.
June 12 Issued 83,000 shares of $1 par value common stock for cash of $311,250.
July 11 Issued 4,300 shares of $103 par value preferred stock for cash at $107 per share.
Nov. 28 Purchased 2,400 shares of treasury stock for $9,350.
Required:
Prepare the journal entries for the Carla Vista Co. transactions shown above. (Record journal entries in the order presented in the problem.)

Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information available:
• Pan Asia Mining Co.’s stock (Ticker: PAMC) is trading at $22.50.
• The company’s stock is expected to pay a year-end dividend of $1.08 that is expected to grow at a certain rate.
• The stock’s expected rate of return is 10.80%.
Based on this information, Robert's forecast of PAMC's growth rate of earning and dividends should be:__________.

Tyler buys a futures contract from Alex that gives him the right to buy 1,000 barrels of oil at $125 per barrel in 48 months. What happens in 48 months if the actual price per barrel of oil is $100? Group of answer choices Alex must give Tyler $10,000. The contract becomes void because the price turned out lower than expected. Tyler must pay Alex $25,000. Tyler makes a profit of $25 per barrel, or $25,000.

Gains from trade
Consider two neighboring island countries called Felicidad and Arcadia. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor.
Jeans Rye
Country
(Pairs per hour of labor) (Bushels per hour of labor)
Felicidad 5 20
Arcadia 8 16
Initially, suppose Arcadia uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye while Felicidad uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Felicidad produces 15 million pairs of jeans and 20 million bushels of rye, and Arcadia produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.
1. Felicidad's opportunity cost of producing 1 pair of jeans is (1/2, 1/4, 2, 4 Buschels) of rye, and Arcadia's opportunity cost of producing 1 pair of jeans is (1/2, 1/4, 2, 4 Buschels) of rye. Therefore, (Arcadia, Felicia) has a comparative advantage in the production of jeans, and has a comparative advantage in the production of rye.
2. Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce _____ million pairs per week, and the country that produces rye will produce ____ million bushels per week.
Suppose the country that produces jeans trades 18 million pairs of jeans to the other country in exchange for 54 million bushels of rye.
3. When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of rye was 68 million bushels per week. Because of specialization, the total production of jeans has increased by_____million pairs per week, and the total production of rye has increased by____million bushels per week.
Because the two countries produce more jeans and more rye under specialization, each country is able to gain from trade.
4. Complete the table: Production, Consumption, Trade Action, Increase in Consumption. For the answer choices of Trade Action: Jeans(Exports 18, Imports 18), Rye (Exports 54, Imports 54) Everything else are numerical values.
Felicia Felica Arcadia Arcadia
Jeans Rye Jeans Rye
(Millions) (Millions) (Millions) (Millions)
Without Trade
Production 15 20 8 48
Consumption 15 20 8 48
With Trade
Production
Trade Action
Consumption
Gains from Trade
Increase in Trade

The roles of money Larry just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down payment. He's deciding between a Super and a Duper. The Super is priced at $23,599, and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes the dealership a check for $4,000 and takes out a loan for the remainder of the purchase price. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money: Medium of Exchange, Unit of Account, Store of Value Larry writes a check for $4,000. Larry can easily determine that the price of the Super is more than the price of the Duper. Larry has saved $4,000 in his checking account.

Centre College, a private liberal arts college in Central Kentucky, charged (billed) tuition and fees of $50,000 based on the registration of students; Centre provided scholarships of $12,000 to the registered students. The entry to bill the tuition and fees and scholarships would include a: A. Debit to Tuition and Fees, $50,000. B. Debit to Tuition Discounts and Allowances, $12,000. C. Credit to Tuition and Fees, $38,000. D. Credit to Tuition Discounts and Allowances, $14,000.

The company makes 12,000 units of this part each year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 6.30 Direct labor $ 5.70 Variable overhead $ 4.80 Fixed Costs: Supervisor's salary $ 7.00 Depreciation of special equipment $ 8.60 Common fixed overhead $ 7.20 An outside supplier has offered to produce this part and sell it to the company for $37.70 each. If this offer is accepted, the supervisor will be fired. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. If the outside supplier's offer were accepted, common fixed costs would be reduced by $17,000. Now assume that the facilities that had been used to produce part S54 could be used for something else if S54 parts are purchased from an outside supplier. If this is true, would you be more likely or less likely to outsource S54 to the outside contractor?

Jim Arnold began a business called Arnold's Shoe Repair.
Required:
1. Complete the T accounts for Cash; Supplies; Jim Arnold, Capital; and Utilities Expense. Identify the following transactions by letter and place them on the proper side of the T accounts:
a. Invested cash in the business, $7,000.
b. Purchased supplies for cash, $800.
c. Paid utility bill, $1,500.

The adjusted trial balance for Waterway Industries at the end of the current year, 2021, contained the following accounts. 5-year Bonds Payable 9% $3000000 Interest Payable 48000 Premium on Bonds Payable 98000 Notes Payable (3 months.) 38000 Notes Payable (5 yr.) 166000 Mortgage Payable ($13000 due currently) 200000 Salaries and wages Payable 16000 Income Taxes Payable (due 3/15 of 2022) 23000 The total long-term liabilities reported on the balance sheet are $_______.

Morganton Company makes one product, and it provided the following information to help prepare the master budget for its first four months of operations:a. The budget selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,100, 22,000, 24,000, and 25,000 units, respectively. All sales are credit.b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month.c. The ending finished goods inventory equals 20% of the following month's unit sales.d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit requires 4 pounds of raw materials at $2.50 per pound.e. 40% of raw materials purchases are paid for in the month of purchase and 60% in the following month.f. The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor hours.g. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $61,000.1. If 96,800 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?2. What is the estimated cost of raw materials purchases for July?3. If the cost of raw material purchases in June is $127,520, what are the estimated cash disbursements for raw materials purchases in July?4. What is the estimated accounts payable balance at the end of July?5. What is the estimated raw materials inventory Balance (in dollars) at the end of July?6. What is the total estimated direct labor costs for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced?7. If the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor hour, what is the estimated unit product cost?8. What is the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor-hour?9. What is the estimated cost of goods sold and gross margin for July, if the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor hour?10. What is the estimated net operation income for July, if the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor hour?

Moss County Bank agrees to lend the Sandhill Co. $635000 on January 1. Sandhill Co. signs a $635000, 6%, 9-month note. The entry made by Sandhill Co. on January 1 to record the proceeds and issuance of the note is

a

Interest Expense 28575
Cash 606425
Notes Payable 635000
b

Cash 635000
Interest Expense 28575
Notes Payable 635000
Interest Payable 28575
c

Cash 635000
Notes Payable 635000
d

Cash 635000
Interest Expense 28575
Notes Payable 663575

client is using the Sales on Account workflow. Instead of receiving a payment against the invoice, they add a new deposit categorized to an income account.

Mr Sinclair has diabetes and heart trouble and is generally satisfied with the care he has received under original Medicare, but he would like to know more about Medicare advantage special needs plans

.​

Ben, an accountant for AirLift, Inc., a ride service, learns of undisclosed company plans to distribute a new app. Ben buys 10,000 shares of AirLift stock. He reveals the company plans to Carly, who buys 5,000 shares. Carly tells Don, who tells Erwin, and each buys 1,000 shares. They know that Carly got her information from Ben. When AirLift publicly announces its new app, Ben, Carly, Don, and Erwin sell their stock for a profit. If Ben is liable under the Securities Exchange Act of 1934, it will be because the information on which he based his purchase of AirLift stock was​:

A. a forward-looking forecast.​B. ​not material.C. ​not yet public.D. ​not yet true.

Which of the following is the closest example of perfect price discrimination? Group of answer choices At an auction of antique furniture, each piece of furniture is sold to the highest bidder An electric utility charging higher rates to the customers in the summer season than in the winter season An airline providing discounts to its frequent-flyers as they fly more A golf-club imposing a very high entry fee to reduce membership requests

The following are Sheridan Corp.'s comparative balance sheet accounts at December 31, 2017, and 2016, with a column showing the increase (decrease) from 2016 to 2017.
COMPARATIVE BALANCE SHEETS
2017 2016 Increase (Decrease)
Cash $806,900 $700,900 $106,000
Accounts receivable 1,131,700 1,159,400 (27,700 )
Inventory 1,842,900 1,730,100 112,800
Property, plant, and equipment 3,300,200 2,968,200 332,000
Accumulated depreciation (1,173,600) (1,037,600) (136,000)
Investment in Myers Co. 307,300 277,000 30,300
Loan receivable 247,500 ? 247,500
Total assets $6,462,900 $5,798,000 $664,900
Accounts payable $1,020,900 $950,800 $70,100
Income taxes payable 30,000 50,200 (20,200 )
Dividends payable 80,500 100,500 (20,000)
Lease liabililty 392,000 ? 392,000
Common stock, $1 par 500,000 500,000 ?
Paid-in capital in excess of par-common stock 1,489,000 1,489,000 ?
Retained earnings 2,950,500 2,707,500 243,000
Total liabilities and stockholders' equity $6,462,900 $5,798,000 $664,900
Additional information:
1. On December 31, 2016, Sheridan acquired 25% of Myers Co.'s common stock for $277,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,108,000. Myers reported income of $121,200 for the year ended December 31, 2017. No dividend was paid on Myers's common stock during the year.
2. During 2017, Sheridan loaned $291,600 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $44,100, plus interest at 10%, on December 31, 2017.
3. On January 2, 2017, Sheridan sold equipment costing $60,000, with a carrying amount of $38,100, for $40,400 cash.
4. On December 31, 2017, Sheridan entered into a capital lease for an office building. The present value of the annual rental payments is $392,000, which equals the fair value of the building. Sheridan made the first rental payment of $59,900 when due on January 2, 2018.
5. Net income for 2017 was $323,500.
6. Sheridan declared and paid the following cash dividends for 2017 and 2016.
2017 2016
Declared
December 15, 2017
December 15, 2016
Paid February 28, 2018
February 28, 2017
Amount $80,500 $100,500
Required:
1. Prepare a statement of cash flows for Sheridan Corp. for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

The trial balance of Wikki Cleaners at December 31, 2012, the end of the current fiscal year, is as follows:

Wikki Cleaners Trial Balance December 31, 2012

Cash $13,200
Cleaning Supplies 22,000
Prepaid Insurance 5,400
Equipment 206,000
Accumulated Depreciation $74,100
Accounts Payable 8,500
Common Stock 60,000
Retained Earnings 31,200
Dividends 27,000
Revenue 171,560
Rent Expense 28,500
Wages Expense 39,720
Utilities Expense 2,130
Miscellaneous Expense 1,410$
345,360 $345,360

Information for the adjusting entries is as follows:

a. Cleaning supplies on hand on December 31, 2012, $18,750.
b. Insurance premiums expired during the year, $1,800.
c. Depreciation on equipment during the year, $21,600.
d. Wages accrued but not paid at December 31, 2012, $1,830.

Required:
Journalize the the entries.

The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows.
TYBALT CONSTRUCTION
Adjusted Trial Balance
December 31, 2017
No. Account Title Debit Credit
101 Cash $ 6,500
104 Short-term investments 22,000
126 Supplies 8,000
128 Prepaid insurance 8,300
167 Equipment 50,000
168 Accumulated depreciation—Equipment $ 25,000
173 Building 162,000
174 Accumulated depreciation—Building 54,000
183 Land 68,020
201 Accounts payable 16,500
203 Interest payable 3,000
208 Rent payable 3,200
210 Wages payable 2,400
213 Property taxes payable 1,200
233 Unearned professional fees 7,400
251 Long-term notes payable 68,000
301 O. Tybalt, Capital 132,800
302 O. Tybalt, Withdrawals 10,000
401 Professional fees earned 100,000
406 Rent earned 15,500
407 Dividends earned 2,000
409 Interest ear 2,400
606 Depreciation expense—Building 11,880
612 Depreciation expense—Equipment 7,500
623 Wages expense 28,500
633 Interest expense 4,800
637 Insurance expense 7,300
640 Rent expense 11,600
652 Supplies expense 7,100
682 Postage expense 3,500
683 Property taxes expense 3,100
684 Repairs expense 7,800
688 Telephone expense 2,100
690 Utilities expense 3,400
Totals $ 433,400 $ 433,400
O. Tybalt invested $6,500 cash in the business during year 2017 (the December 31, 2016, credit balance of the O. Tybalt, Capital account was $126,300). Tybalt Construction is required to make a $8,500 payment on its long-term notes payable during 2018.
Required:
1a. Prepare the income statement for the calendar-year 2017.
1b. Prepare the statement of owner's equity for the calendar-year 2017.
1c. Prepare the classified balance sheet at December 31, 2017.
2. Prepare the necessary closing entries at December 31, 2017.

An office has 5 copy machines that need to be serviced approximately once an hour either for paper, staples, or toner or repair. Each machine therefore runs approximately 1 hour before needing some attention. The average service time is 7 minutes. Copier downtime in this busy office costs approximately $20 per hour. The cost of attendant is $15 per hour. Using the finite queuing analysis, answer the following questions:________.
a. What is the average number of copiers in line?
b. What is the average number of copiers still in operation?
c. What is the average number of copiers being serviced?
d. The firm is considering adding another attendant at the same $15 rate. Should the office do it?

John blodgett is the managing partner of a business that has just finished building a 60 room mote boldgett aticipates that he will rent these rooms for 15000 nights nesxt year all rooms are similar and will rent for the same price blodgett estimates the following operating costs for next year the capital invested in the motel is $900000 the paritnarship target return on investment is 25% blodgett expect demand for rooms to be uniform throughout the year he plans to price the rooms at full cost plus markup on full cost to earn the target return on invesment

Variable operating cost $5per room-nigh

Total fixed costs 375000


What price should blodgett charge room night ?what is the markup as percentage of the full requried cost of room might

Delsing Canning Company is considering an expansion of its facilities. Its current income statement is as follows:
Sales $ 6,200,000
Variable costs (50% of sales) 3,100,000
Fixed costs 1,920,000
Earnings before interest and taxes (EBIT) $ 1,180,000
Interest (10% cost) 440,000
Earnings before taxes (EBT) $ 740,000
Tax (30%) 222,000
Earnings after taxes (EAT) $ 518,000
Shares of common stock 320,000
Earnings per share $ 1.62
The company is currently financed with 50 percent debt and 50 percent equity (common stock, par value of $10). In order to expand the facilities, Mr. Delsing estimates a need for $3.2 million in additional financing. His investment banker has laid out three plans for him to consider:
Sell $3.2 million of debt at 14 percent.
Sell $3.2 million of common stock at $20 per share.
Sell $1.60 million of debt at 13 percent and $1.60 million of common stock at $25 per share.
Variable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2,420,000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1.60 million per year for the next five years.
Delsing is interested in a thorough analysis of his expansion plans and methods of financing.He would like you to analyze the following:
Required:
a. The break-even point for operating expenses before and after expansion (in sales dollars). (Enter your answers in dollars not in millions, i.e, $1,234,567.)
b. The degree of operating leverage before and after expansion. Assume sales of $6.2 million before expansion and $7.2 million after expansion. Use the formula: DOL = (S − TVC) / (S − TVC − FC). (Round your answers to 2 decimal places.)
c-1. The degree of financial leverage before expansion. (Round your answers to 2 decimal places.)
c-2. The degree of financial leverage for all three methods after expansion. Assume sales of $7.2 million for this question. (Round your answers to 2 decimal places.)
d. Compute EPS under all three methods of financing the expansion at $7.2 million in sales (first year) and $10.1 million in sales (last year). (Round your answers to 2 decimal places.)

Western Company is preparing a cash budget for June. The company has $12,000 in cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must:
a. Borrow $4,500.
b. Borrow $2,500.
c. Borrow $10,000.
d. Repay $7,500.
e. Repay $2,500.

The following information is available for Sage Hill Corporation for the year ended December 31, 2022.
Beginning cash balance $43,000
Accounts payable decrease 3,500
Depreciation expense 75,000
Accounts receivable increase 8,700
Inventory increase 12,100
Net income 337,000
Cash received for sale of land at book value 43,000
Sales revenue 740,000
Cash dividends paid 11,800
Income tax payable increase 4,400
Cash used to purchase building 145,000
Cash used to purchase treasury stock 33,900
Cash received from issuing bonds 258,000
Required:
1. Prepare a statement of cash flows using the Indirect method. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).)

Placker Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $155,000, variable manufacturing overhead of $3.40 per machine-hour, and 50,000 machine-hours. Recently, Job A881 was completed with the following characteristics:

Total machine-hours 100
Direct materials $ 645
Direct labor cost $ 2,300

The total job cost for Job A881 is closest to: (Round your intermediate calculations to 2 decimal places.)

a. $1,295
b. $3,595
c. $2,950
d. $2,945

Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below:
Processing $ 21,600
Supervising $ 3,700
Other $ 10,700
Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below
MHs (Processing) Batches (Supervising)
Product Y7 3,700 400
Product V0 6,300 600
Total 10,000 1,000
Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.
Product Y7 Product V0
Sales (total) $ 102,200 $ 78,900
Direct materials (total) $ 40,800 $ 39,100
Direct labor (total) $ 47,200 $ 22,300
What is the product margin for Product Y7 under activity-based costing?
a. -$3,800
b. $4,728
c. $14,200
d. $6,208

Required: Access the American Eagle 2014 Annual Report/10K (In the appendix to the textbook or obtain online). Look at the financial statements and Notes to the financial statements closely and attempt to infer what kinds of information they report. Then, answer the following questions based on the Report.
1. What type of product does it sell?
2. On what date does American Eagle Outfitters most recent reporting year end?
3. Are its financial statement audited by independent CPA's?
4. Does its total assests increase or decrease over the last year?

Pacific Bank provides loans to businesses in the community through its Commercial Lending Department. Small loans (less than $100,000) may be approved by an individual loan officer, while larger loans (greater than $100,000) must be approved by a board of loan officers. Once a loan is approved, the funds are made available to the loan applicant under agreed-upon terms. Pacific Bank has instituted a policy whereby its president has the individual authority to approve loans up to $5,000,000. The president believes that this policy will allow flexibility to approve loans to valued clients much quicker than under the previous policy. As an intern auditor of Pacific Bank, how would you reposnd to this change in policy?

Automobile firms can use their inputs to make hybrid cars or "regular" (non-hybrid) cars. If the equilibrium price of hybrid cars rises sharply, the resulting shift in the supply curve for "regular" cars will cause:

Partial income statements for Murphy & Murphy (M & M) reported the following summarized amounts:

Quarter 1 Quarter 2 Quarter 3 Quarter 4
Net Sales $ 60,000 $ 59,000 $ 80,000 $ 68,000
Cost of Goods Sold 24,000 26,550 29,050 26,520
Gross Profit $ 36,000 $ 32,450 $ 50,950 $ 41,480

After these amounts were reported, M & M’s accountant determined the inventory at the end of Quarter 2 was understated by $2,950. The inventory balance at the end of the other three quarters was accurately stated.
Required:
Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.